XAU/USD Surges to Record High as Fed Rate Cut Bets Intensify

XAU/USD (Gold/USD) has surged to an all-time high above $2,680 per ounce, gaining 2.1% in the latest trading session amid mounting expectations for Federal Reserve rate cuts and concerns over a potential US government shutdown. The precious metal's rally accelerated as traders price in a 65% probability of a 50-basis-point Fed rate cut by year-end, up from 40% last week. Dollar weakness has provided additional tailwind, with the DXY index falling 0.8% to 101.20. Meanwhile, deepening freight recession indicators suggest broader economic slowdown, with the Cass Freight Index showing its 24th consecutive monthly decline. Technical indicators show XAU/USD breaking above previous resistance at $2,650, with next targets at $2,700 and $2,725. The combination of dovish Fed expectations, fiscal uncertainty, and global geopolitical tensions continues to drive safe-haven demand for gold against the US dollar.